Tweedy Browne

Tweedy Browne

Last Update: 08-11-2016
Related: Tweedy Browne Global Value

Number of Stocks: 50
Number of New Stocks: 2

Total Value: $3,563 Mil
Q/Q Turnover: 1%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Tweedy Browne Watch

  • Tweedy Browne Global Value Fund Quadruples Stake in Hongkong and Shanghai Hotels

    During the second quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund quadrupled its stake in The Hongkong and Shanghai Hotels Ltd. (HKSE:00045). The fund added an additional 12,475,711 shares in the second quarter for an average price of 8.3 Hong Kong dollars ($1.07). The trade had a 0.18% impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund’s portfolio. It now owns 15,525,711 shares of the company.

    The Hongkong and Shanghai Hotels has a market cap of HK$12.81 billion, a P/E ratio of 12.31, an enterprise value of HK$16.31 billion and a P/B ratio of 0.34.


  • Warren Buffett Adds to Phillips 66

    Warren Buffett (Trades, Portfolio) of Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) added to his holdings in Phillips 66 (NYSE:PSX) on Aug. 24.

    Buffett purchased 704,181 shares for an average price of $77.45 per share. The guru now owns 79,486,181 shares in Phillips, and the purchase had an impact of 0.04% on the portfolio.


  • What Has Worked in Investing: Charts

    The world of investing can be a daunting place for beginners and even the more experienced investor. It can take decades to find your investment feet, test different strategies and to develop a money management style that suits both you and your lifestyle.

    It is important that while you are developing your own strategy to avoid being drawn into other strategies, which claim to have better and more sustainable returns. But how do you know which ones to avoid and which ones to take a second look at?


  • Global Value Fund Invests in Emperor Entertainment Hotel

    Tweedy Browne (Trades, Portfolio) Global Value Fund purchased 26,265,000 shares in Emperor Entertainment Hotel (HKSE:00296) at an average price of 1.77 Hong Kong dollars (23 cents in U.S. currency) in the second quarter.

    The trade had a 0.09% impact of the Tweedy Browne (Trades, Portfolio) Global Value Fund’s portfolio.


  • Tweedy Browne Global Value Fund Trims T Hasegawa

    During the second quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund trimmed its stake in T Hasegawa (TSE:4958) at an average price of 1812.5 yen ($18.08).The trade had a -0.02% impact on the fund’s portfolio. It now owns 188,400 shares of the company.



  • Global Value Fund Buys Stake in Thinking Electronic

    The Tweedy Browne (Trades, Portfolio) Global Value Fund purchased a 365,000-share stake in Thinking Electronic Industrial (TPE:2428) at an average price of 49.8 new Taiwan dollars ($1.59 in U.S. currency) in the second quarter.

    Thinking Electronic Industrial was originally founded in 1979 and is currently headquartered in Kaohsiung, Taiwan. The company creates and distributes circuit components that provide protection against using too much voltage, over temperature and overcurrent protection. The company’s products include NTC and PTC thermistor, zinc oxide varistors and gas discharge tubes among others.


  • Tweedy Browne Global Value Fund Adds to Hang Lung Group

    During the second quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund added to its stake in the Hang Lung Group (HKSE:00010) at an average price of 22.08 Hong Kong dollars ($2.85). The trade had a 0.11% impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund's portfolio. It now owns 6,111,500 shares of the company.

    The Hang Lung Group was founded on September 13, 1960. Since then, the company has established itself to becoming one of the largest real estate developers in Hong Kong. The Hang Lung Group is also engaged in investment holding and through its subsidiaries, property development for sales and leasing, property investment for rental income and other investments.


  • Tweedy Browne Global Value Fund Adds to SCOR Stake

    During the second quarter the Tweedy Browne (Trades, Portfolio) Global Value Fund added 436,730 shares to its stake in SCOR (XPAR:SCR) at an average price of 29.57 euros ($32.75) per share.

    The trade had a 0.18% impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund’s portfolio. It now owns 5,998,250 shares in the company.


  • Tweedy Browne 2nd Quarter Shareholder Letter

    Having regained their footing in mid-February, global equity markets continued to advance during the 2nd quarter right up until the Brexit vote in late June. Despite the turbulence produced by the surprise vote, it was not enough to erase what turned out to be a modestly positive quarter in terms of returns. We are pleased to report that all four of the Tweedy, Browne funds finished the quarter in positive territory, and well ahead of their respective benchmark indices.

    While the Brexit decision sent shockwaves temporarily through markets, the downside volatility has turned out to be short-lived (at least so far) as investors appeared to re-focus on what this means for interest rates and future central bank behavior. Much of the ground that was lost in equity markets in the couple of days after the vote has now been recovered, particularly in the United States. What Brexit means longer term for the UK, the European Union (EU), and our markets, only time will tell. As investors, we should not lose sight of the fact that businesses are a mix of human, physical, and intellectual capital, and have a remarkable ability to adapt to changes in the economic and regulatory environment. Many, if not most, of the businesses in our Fund portfolios are large, multi-product businesses that operate on a global basis in a host of markets and currencies. Their success is not overly dependent on the outlook for the European economy. While the near term volatility could remain high in the days and weeks ahead, from our view this is certainly not an end of days scenario for our global markets, but rather something that should lead to opportunities for price disciplined value investors.


  • Tweedy Browne Global Value Fund Trims Daetwyler Position

    Tweedy Browne (Trades, Portfolio) Global Value Fund slashed 80,900 shares of Daetwyler (XSWX:DAE) from its portfolio during the second quarter.

    Daetwyler is an international industrial component supplier and a distributor of engineering and electronic components. It has a market cap of 1.95 billion Swiss francs, an enterprise value of 1.81 billion Swiss francs, a P/E ratio of 25.79 and a P/B ratio of 2.61.


  • Chuck Royce's Largest 2nd-Quarter Trades

    Chuck Royce (Trades, Portfolio), portfolio manager for Royce Pennsylvania Mutual Fund since 1972, is one of the pioneers in small-cap investing and enjoys one of the longest tenures of any active mutual fund manager. During the second quarter he traded the following stocks:

    The guru reduced his stake in UniFirst Corp. (UNF) by 21.25% with an impact of -0.26% on the portfolio.


  • Tweedy Browne Global Fund Purchases Stake in Cie Generale des Etablissements Michelin

    During the second quarter, The Tweedy Browne (Trades, Portfolio) Global Fund purchased a 760,360-share stake in Cie Generale des Etablissements Michelin SA (XPAR:ML) at an average price of 4.91 euros. The trade had a 1% impact on the Tweedy Browne (Trades, Portfolio) Global Fund portfolio.

    Cie Generale des Etablissements Michelin was formed in 1889. The company manufactures and sells tires for all kinds of vehicles. It has three operating segments: passenger car and light truck tires and related distribution; truck tires and related distribution and specialty businesses.


  • Agco: Darling of the Value Community

    Agco (NYSE:AGCO) is a U.S.-based tractor manufacturer that is down with grain prices. Being out of favor, it is a darling of the value investing community. What will probably change that is a year of inclement weather, which will raise grain prices.

    Agco has 82.47 million shares and trades at a market cap of $4 billion. The dividend is 52 cents and dividend yield 1%. Trailing earnings per share are $2.81 and the price-earnings ratio is 17.


  • Warren Buffett Is Wrong; Macro Is Important

    Warren Buffett (Trades, Portfolio) is famous for telling investors that he and Charlie Munger (Trades, Portfolio) don’t pay any attention to macroeconomics and that they (other investors) would be well served by ignoring macroeconomics as well.

    There are a few choice Buffett quotes on the subject, such as "Forming macro opinions or listening to the macro or market predictions of others is a waste of time" as well as “I don’t read economic forecasts. I don’t read the funny papers” and “Charlie and I don’t pay attention to macro forecasts. We’ve worked together now for 54 years, and I can’t think of a time when we made a decision on a stock or on a company.” So it’s pretty clear that both Buffett and Munger have a low opinion of the place macroeconomics has in an investment process.


  • Tweedy Browne Global Value Fund Makes Trades Around the World

    Since its inception in 1993, the Tweedy Browne (Trades, Portfolio) Global Value Fund invests in foreign stocks that are undervalued based on Ben Graham’s investment approach. While the fund primarily focuses on developed countries outside of the U.S., the managers still consider U.S. stocks as opportunities become attractive. During the second quarter, Tweedy Browne (Trades, Portfolio) Global made 12 trades, three each of new buys, adds, reductions and sellouts.

    The fund bought 12,880,300 shares of BAE Systems Inc. (LSE:BA), which represents 1.25% of the global fund’s portfolio. The aerospace and defense company averaged £4.9 per share during the second quarter. Additionally, Tweedy Browne (Trades, Portfolio) Global bought 760,360 shares of Cie Generale des Etablissements Michelin (XPAR:ML). The global fund dedicated 1% of its portfolio to the French auto company, which averaged €90.23 per share. Tweedy Browne (Trades, Portfolio) Global also bought 486,757 shares of British biotech company Shire PLC (LSE:SHP) at an average price of £42.06.


  • 3 Guru-Held British Stocks That May Be Impacted by Brexit

    In just a little over a week, the U.K. will vote on June 23 whether to stay in the European Union, in response to growing calls from the Conservative Party and the U.K. Independence Party, who say it’s been too long since Britons last voted to stay in the union in 1975.

    Bloomberg Monday speculated about what the first 100 days may look like should Brexit happen, predicting chaos and loss of confidence through the rest of the EU. President of the EU Donald Tusk has said Brexit could lead to the end of “western political civilization itself.”


  • Tweedy Browne Comments on Standard Chartered Bank

    While our bank stocks as a group were being buffeted by slowing global growth, increasing concern about the Chinese economy and collapsing oil prices, it is our position in Standard Chartered Bank (LSE:STAN) that has to date proven to be the most disappointing. As you know from our prior letters, we first purchased shares in this emerging market dependent bank back in 2013, after it had declined from 18 pounds to approximately 13 pounds per share, a price we felt did not adequately account for its future prospects. As Will Browne has sometimes said, “there is a fine line between being early and being wrong.”

    At the time of purchase, Standard Chartered, in our view, was conservatively financed, traded at a significant discount to our estimates of its intrinsic value, and paid an attractive dividend. That dividend was omitted last November due to mounting capital concerns, loan losses and uncertainty associated with the bank’s oil & gas loan book. As of fiscal year-end, Standard Chartered was priced at roughly 50% of its tangible per share net asset value (book value). If Standard Chartered’s earnings power were to recover to a 10% return on tangible equity (based on today’s book value), it would generate a 20% after-tax earnings yield on the current price. In other words, the current stock price would be 5 times after-tax earnings, if earnings recover to a 10% return on equity. In the past, banks in Asia have been acquired at significant premiums to tangible net asset value and at more than 10 times after-tax earnings. The bank is in the midst of a restructuring with new management, and appears to be taking all the right steps to put it back into a more competitive and more profitable position. That said, the near-term headwinds are significant. We continue to monitor the position carefully, and have eliminated it from our Worldwide High Dividend Yield Value Fund because it suspended its dividend.


  • Tweedy Browne Funds' Investment Adviser's Letter to Shareholders

    “Interest rates are, of course, prices. They are the prices that set investment hurdle rates and that discount the present value of estimated future cash flows. They are the traffic signals of a market economy.”


  • Tweedy Browne Fund 1st Quarter 2016 Commentary

    High equity valuations combined with increasing macroeconomic worries, not the least of which is the sense that monetary largesse may have run its course, continued to roil global equity markets in the first quarter. After a turbulent start to the New Year similar to that faced late last summer, equity markets rather quickly regained their composure to finish the second half of the quarter with a flourish, recouping much of the losses they suffered in the first half of the quarter. With the exception of the Wordwide High Dividend Yield Value Fund, which modestly underperformed its benchmark over the last three months, our remaining three Funds all outperformed their benchmarks in the first quarter, which led to an index beating result, albeit negative, over the last fiscal year in our two global value funds.


  • Tweedy Browne Global Value Invests in Bank of New York Mellon

    Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes a value investing approach that focuses on long term investments very similar to Joel Greenblatt (Trades, Portfolio), Seth Klarman (Trades, Portfolio) and the founder of value investing Benjamin Graham.

    During the first quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund purchased 1,315,780 shares of Bank of New York Mellon Corp. (NYSE:BK).


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